Lucara Announces a New Multi-Year Diamond Sales Agreement with Hb Antwerp
February 18, 2024
NEWS RELEASE
LUCARA ANNOUNCES A NEW MULTI-YEAR DIAMOND SALES AGREEMENT WITH HB ANTWERP
VANCOUVER, February 18, 2024 /CNW/ (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm)
Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to announce that it has entered into a new diamond
sales agreement (“NDSA”) with HB Group out of Antwerp, Belgium ("HB"), in respect of all qualifying diamonds
produced in excess of 10.8 carats in size from its 100% owned Karowe Diamond Mine in Botswana.
Under the terms of the 10-year NDSA with HB, the purchase price paid for Lucara's +10.8 carat rough diamonds shall
be based on the mutual agreement of the estimated polished outcome, determined through state-of-the-art
scanning and planning technology , together with external benchmarks and more than a decade of Lucara’s special
stone sales data. A further sales value uplift (“top-up”) will be paid to Lucara based on actual achieved polished sales
thereafter, less a fixed margin payable to HB. This pricing mechanism is expected to deliver regular cash flow for this
important segment of the Company’s production profile at better than conventional diamond industry tender prices.
The anticipated benefits of the NDSA to Lucara include:
• Regular cashflow to Lucara in support of the ongoing development of the Karowe Underground Project.
• Significant potential revenue upside, especially for large complex rough diamonds , based on historical
performance, providing a premium on diamond sales benefiting all Karowe Mine stakeholders.
• Ongoing alignment with the Government of Botswana’s strategy to diversify downstream, and participate
in the upside of polished diamond revenue.
• Streamlined diamond evaluation, sales reporting and payment mechanisms .
• The creation of an efficient and restructured, large and high quality diamond supply chain which has the
potential of meeting the demands of high-value brands
The NDSA is subject to the approval of the Company’s project lenders. Upon such approval the agreement terms will
be effective retroactively from December 1, 2023. Since that time, Lucara has continued to supply qualifying rough
diamonds to HB in order to fund its operations and the Karowe Underground Project.
William Lamb, President & CEO commented: “As we navigate through the ever -evolving landscape of the diamond
industry, I'm pleased to announce Lucara's strategic decision to re-enter into a long-term supply agreement with HB
Antwerp. This partnership reflects our commitment to ensuring stability and sustainability in our operations. Our
collaboration with HB Antwerp presents an opportunity to further enhance our position in the market , building on
the knowledge of the past and the understanding of the quality of the polished diamonds produced from our Karowe
diamonds. We remain steadfast in our dedication to delivering exceptional quality and premium value from our
diamonds to all stakeholders , even amidst external pressures. Together, we will continue to uphold the legacy of
excellence that defines Lucara's journey in the world of diamonds”.
On behalf of the Board,
William Lamb
President and Chief Executive Officer
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For further information, please contact:
Hannah Reynish Investor Relations & Communications
+1 604 674 0272| [email protected]
Sweden Robert Eriksson, Investor Relations & Public Relations
+46 701 112615 | [email protected]
UK Public Relations Charles Vivian / Jos Simson, Tavistock
+44 778 855 4035 | [email protected]
ABOUT LUCARA
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned
Karowe Diamond Mine in Botswana. The Karowe Mine has been in production since 2012 and is the focus of the
Company’s operations and development activities. Clara Diamond Solutions Limited Partnership (“Clara”), a wholly-
owned subsidiary of Lucara, has developed a secure, digital sales platform which ensures diamond provenance from
mine to finger. Lucara has an experienced board and management team with extensive diamond development and
operations expertise. Lucara and its subsidiaries operate transparently and in accordance with international best
practices in the areas of sustainability, health and safety, environment, and community relations. Lucar a has
adopted the IFC Performance Standards and the World Bank Group’s Environmental, Health and Safety Guidelines
for Mining (2007). Accordingly, the development of the Karowe Underground Project adheres to the Equator
Principles. Lucara is committed to upholding high standards while striving to deliver long-term economic benefits to
Botswana and the communities in which the Company operates.
ABOUT HB ANTWERP
HB Antwerp turns the diamond supply chain upside down starting with the customer. Using technology, they bring
simplicity and transparency to a typically complex supply chain. Everything happens in a closed loop called Signum
in Antwerp, backed with the latest technologies and tracked with blockchain making it 100% transparent from
diamond mine to market.
The information is information that Lucara is obliged to make public pursuant to the EU Market Abuse Regulation
and the Swedish Securities Markets Act. This information was submitted for publication, through the agency of the
contact person set out above, on February 18, 2024 at 7:00 p.m. Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made herein contain certain “forward -looking information” and “forward -looking
statements” as defined in applicable securities laws. Generally, any statements that express or involve discussions
with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or
performance and often (but not always) using forward -looking terminology such as “expects”, “is expected”,
“anticipates”, “believes”, “plans”, “projects”, “estimates”, “budgets”, “scheduled”, “forecasts”, “assume s”,
“intends”, “strategy”, “goals”, “objectives”, “potential”, “possible” or variations thereof or stating that certain
actions, events, conditions or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be
achieved, or the negat ive of any of these terms and similar expressions) are not statements of historical fact and
may be forward-looking statements.
In particular, forward -looking information and forward -looking statements may include, but are not limited to,
information or statements with respect to the anticipated benefits of the Diamond Sales Agreement, including the
ability to achieve regular cash flows and the ability to achieve better pricing than available through tender.
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Forward-looking information and statements are based on the opinions and estimates of management as of the date
such statements are made, and they are subject to several known and unknown risks, uncertainties and other factors
which may cause the actual re sults, performance or achievements of the Company to be materially different from
any future results, performance or achievement expressed or implied by such forward-looking statements, including
risks related to changes in the market for diamond sales . The Company believes that expectations reflected in this
forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be
correct. Certain risks which could impact the Company and its performance under the Diamond Sales Agreement
are discussed under the heading “Risks and Uncertainties” in the Company’s most recently filed Interim MD&A and,
in the Company’s most recent Annual Information Form available at http://www.sedar.com (the “AIF”).
The foregoing is not exhaustive of the factors that may affect any of our forward -looking statements. Forward -
looking statements are statements about the future and are inherently uncertain, and our actual achievements or
other future events or conditions may differ materially from those reflected in the forward -looking statements due
to a variety of risks, uncertainties, and other factors, including, without limitation, those referred to in this news
release.
Although the Company has attempted to identify important factors that could cause actual actions, events, or results
to differ materially from those described in forward -looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended. The forward-looking statements contained
in this news release are based on the beliefs, expectations, and opinions of management as of the date of this
disclosure. There can be no assurance that forward -looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly, readers and
investors should not place undue reliance on forward -looking statements. Forward -looking information and
statements are made as of the date of this disclosure and accordingly are subject to change after such date. Except
as required by law, the Company disclaims any obligation to revise any forward-looking information and statements
to refle ct events or circumstances after the date of such information and statements. All forward -looking
information and statements contained or incorporated by reference in this news release are qualified by the
foregoing cautionary statements.